Munis Fear SB 1?s Reach

The Million Solar Roofs legislation would require public power agencies to create a surcharge to fund photovoltaic subsidies. Several municipal utilities note that they already have ratepayer-funded public-goods programs that subsidize solar power system buy-downs. SB 1 adds a surcharge?and munis loathe having state lawmakers tell them what to do. The Sacramento Municipal Utility District installed 9.3 MW of solar power systems, with 75 percent in commercial installations. The residential rebate is $3/watt, which saves the homeowner about $6,000 on a 2 kW system, said Chris Capra, SMUD spokesperson. The Los Angeles Department of Water & Power has paid out about $75 million in residential photovoltaic rebates?out of a $150 million pot approved in September 2000. That?s created about 9 MW of installed capacity, according to Henry Martinez, department chief operating officer for power. The Los Angeles City Council June 29 approved the department?s renewables portfolio standard policy, which could involve a set-aside for solar power. Under the policy, the department could establish an electricity surcharge, if needed, to meet its 20 percent renewable power goal by 2017. Meanwhile, the department offers a $3.50/watt solar incentive under its public-benefits program. The city of Palo Alto has a solar rebate program in place. It offers a $4/watt rebate, and there is about 300 kW of solar in the city. ?We support the overall goal of more renewables and more solar,? said Girish Balachandran, the city of Palo Alto?s assistant director of utilities. ?We don?t believe the bill, as written, will achieve this goal.? Palo Alto?s rebate budget for the fiscal year beginning in July is $215,000, and the subsidy will drop to $3.50/watt. Larry Owens, spokesperson for Silicon Valley Power, tried to sound a little more upbeat on SB 1. ?We are optimistic that this bill will provide a means to encourage more cost-effective solar for all, but we are watching for amendments as it moves through the process,? he said.

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Munis Fear SB 1?s Reach

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